Carry-Along Inc., is debating whether or not to invest in new equipment to manufacture a line of high-quality luggage. The new equipment would cost $850,000, with an estimated four-year life and no salvage value. The estimated annual operating results with the new equipment are as follows: $925,000 Revenue from sales of new luggage line Expenses other than depreciation $625,000 Depreciation (straight-line basis) 250,000 (875,000). Increase in net income from the new line $50,000 Compute the following: (a) (5 pts) Annual cash flow: $ (b) (8 pts) Payback period: (c) (12 pts) Net present value of the proposed investment: $